Which of the Following Situations Is Most Realistic in Principal-Agent

question 12

Multiple Choice

Which of the following situations is most realistic in principal-agent situations?

• A) writing contracts when actions are unobservable
• B) taking actions when contracts are unannounced
• C) writing contracts when actions are observable

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Definitions:

Frame Alignment

In social movement theory, it is the process of making individual and social movement frames more congruent and mutually supportive to foster mobilization.

Resource Mobilization

A theory referring to the process by which social movements gather resources, such as money, labor, and support, to achieve their goals.

Political Opportunity

The presence of favorable conditions or circumstances that enable social movements or political action to emerge and succeed.

Social-Organizational Basis

The underlying structure or foundation of an organization or society, encompassing its norms, values, practices, and institutions.